After years of legal disputes, the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has finally reached its conclusion. On August 7, 2025, both parties submitted a joint motion to dismiss to the U.S. Court of Appeals for the Second Circuit, officially ending the appeal process, with each side bearing their own litigation costs.

This move effectively confirms that the ruling made by District Court Judge Analisa Torres in July 2023 will become the final judgment. The ruling determined that the trading of XRP on the secondary market does not constitute a securities offering, while Ripple's sale of XRP to institutional investors is considered an illegal securities offering.

This result has had a profound impact on the cryptocurrency industry. It not only provides a clear definition of the legal status of XRP but also offers important references for the positioning of other digital assets within the regulatory environment. The conclusion of this case means that Ripple can continue its business development under a more defined legal framework, while also bringing a certain degree of regulatory clarity to the entire cryptocurrency market.

However, this case also highlights the regulatory challenges that still exist in the cryptocurrency space. While secondary market trading has received a relatively lenient designation, the regulations surrounding initial token offerings and sales to institutional investors remain strict. This serves as a reminder for industry participants to be more cautious when engaging in related activities and may prompt more companies to reassess their token issuance and sales strategies.

With the conclusion of this landmark case, the industry looks forward to regulators providing clearer and more comprehensive guidelines to promote the healthy development of the cryptocurrency sector. At the same time, this may also inspire more innovation and compliance measures, driving the entire blockchain ecosystem forward.